Florida Mortgage Overview
If sunshine and warm weather are something
you love, Florida, the flattest state in the country is a great place to live.
Popular with tourists and retirees, Florida is also a great place for
first-time homebuyers. Its median home price is just $215,000, which makes it
an affordable place for first-time buyers to live.
If you're thinking about moving to Florida,
here are the top first-time homebuyer loans you can choose from:
Florida conventional loans
Do you have great
credit and a low debt-to-income ratio? The Florida conventional loan provides
low interest rates for borrowers with credit scores of 660 or higher. You'll
also need average debt ratios of around 36 - 40%. Conventional loans require
just a 3 percent down payment, and you'll pay PMI until you owe less than 80
percent of the home's value.
Florida FHA loans
Borrowers with credit issues
or high debt ratios have luck with Florida FHA loans. With just 3.5 percent
down and at least a 580 credit score, you can buy your first home. FHA loans
have flexible debt ratio guidelines but do require mortgage insurance for the
life of the loan. Borrowers with credit scores between 500 - 579 may qualify
too, but with a 10 percent down payment.
Florida VA loans
Veterans have the distinct
advantage of the VA loan, which offers 100 percent financing. You don't need
great credit or a low debt ratio. As long as you prove you have a stable income
and can afford your bills and the daily cost of living, you're on your way to a
Florida USDA loans
Florida has plenty of
'rural' areas according to the USDA guidelines. Low to moderate-income families
who don't qualify for any other loan program may be eligible for this 100
percent financing loan. You need a 640 credit score and a debt ratio around 41
percent to qualify.
Programs in Florida
Down payment assistant
Florida residents can receive down payment assistance as a second
mortgage. There are no payments due on the loan, but the full amount is due
when you sell the home or refinance the loan.
Salute our Soldiers
program helps veterans secure a first mortgage
with lower than average rates, plus get down payment and closing cost
Florida First-Time Homebuyer
If your income doesn't exceed the guidelines, and the home price is
within the purchase limits, you may secure more favorable terms with the Florida
First-Time Homebuyer program with lower interest
rates and costs on your first loan.